'Banks adopting new ways to reach out to needy'- H.K.Soni, DGM, RBI

New microfinance approaches were needed to reach out to the poorest and the deprived section of society in the country, said Deputy General Manager (DGM), Reserve Bank of India, H.K. Soni during the valedictory function of the two-day national conference on inclusive growth and microfinance access (CIGMA 2011), organised by the Faculty of Management Studies (FMS), Banaras Hindu University, on Sunday.  Saying banking institutions in the country were being asked to adopt service area approach to reach out to the needy, the DGM emphasised that under the approach, rural branches were given a service area of 15 to 20 villages for operation of services, and other banks were allowed to set up a branch in that area only after obtaining a no objection certificate. He also pointed out the need for introducing flexible service like repay weekly and daily small instalments apart from simplification of procedures to open a bank account and facilities like access credit and doorstep banking.  Caitlin Wiesen, country head, UNDP, highlighted severe constraints that were placed on the operational and financial autonomy of the banks. She also said microfinance institutions (MFI) were the only method to perform important task of financial intermediaries in the country.  Earlier, a number of technical sessions and panel discussion on microfinance regulatory framework, responsible microfinance, women entrepreneurs were held. Dean (FMS) SK Singh, secretary general (CIGMA 2011) HP Mathur and other senior faculty members were also present on the occasion.